Hims & Hers Stock Pops After Massive Acquisition
Shares of healthcare company Hims & Hers Health (NYSE: HIMS) jumped as much as 23.9% this week after news of closing a large acquisition. According to data provided by S&P Global Market Intelligence, shares are up 18.3% for the week as of 2:30 p.m. ET.
The biggest news was Hims & Hers issuing 976,341 shares of common stock to acquire Nivagen Pharmaceuticals, which does business as MedisourceRX. The company is a compounding pharmacy, which will allow Hims & Hers to bring some product production in-house rather than outsourcing it to third parties.
While investors may not be pleased by the dilution, strategically the deal makes a lot of sense. Products can now be produced in-house, and Hims & Hers can take that margin. It will also allow the company to be more flexible with what it produces and how products are combined into one solution.
Source Fool.com
